Virbac shares climbed over 4% after the animal health company posted fourth-quarter revenue of 362 million euros, up 1.9% on a reported basis but rising 7.1% at constant exchange rates. While the headline figure missed the 370.8 million euro consensus, constant-currency growth beat expectations.

The apparent shortfall was primarily due to foreign exchange headwinds, especially in emerging markets. Analyst Christophe Dombu noted the miss was "optical," as Virbac’s performance in core markets remained solid. Companion Animal sales, driven by petfood and dermatology products, grew 10.9% organically for the year.

Europe and North America posted strong constant-currency growth of 7.5% and 14.7%, respectively. However, Latin America and other emerging regions faced FX drag. Looking ahead, Virbac expects 2026 revenue growth of 5.5% to 7.5% at constant rates, with an adjusted EBIT margin near 17%.

Investors should watch how currency volatility affects future reporting, given Virbac’s significant emerging market exposure.